Google Facing DOJ Probe

Google is under investigation by the U.S. Department of Justice concerning practices within its advertising program, and has set aside $500 million for a potential resolution fund, the company said in a regulatory filing on Tuesday.

In its quarterly report filed with the U.S. Securities and Exchange Commission, Google said that in May it accrued $500 million for the three-month period ended March 31, 2011 in connection “with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers”.

Although it cannot predict the ultimate outcome of the matter, Google said that it believes that it will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows.

The company did not explain why the charge had been taken retrospectively on its first quarter earnings. It is also not clear to whom Google would have to make the payment in the event of settlement.

Google declined to comment, stating that it was a legal matter. The company has updated its first-quarter results press release on its web site, to reflect the new charge.

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‘Do Not Track’ Internet Legislation, Advances

California is a moving closer to making  into law the first Do Not Track legislation in the U.S., aimed at protecting Internet users from invasive advertising.

The proposed Senate bill, SB-761, passed a Senate Judiciary Committee vote late Tuesday, but it still has a long road ahead before having a chance of being signed into law. It now moves on to the Appropriations Committee, and must also pass the Senate and State Assembly before being sent to Governor Jerry Brown’s desk.

Still, it’s the first time such a bill has made it out of committee, and that’s a big deal, according to John Simpson, director of Consumer Watchdog’s Privacy Project. “This is the first time that a ‘do not track’ bill has actually had a hearing and been debated and then voted forward in the legislative process,” he said.

The bill would give California consumers a simple way of opting out of data collection systems that keep track of their online activities. “It puts up a no trespassing sign on our device,” Simpson said.

Opponents of the bill, including Google, the Direct Marketing Association, and the wireless industry group CTIA, say it puts an unnecessary burden on online commerce.

Online marketers love this type of data because it helps them fashion highly effective targeted advertising. But many consumers don’t want to hand marketers every detail of what they do on the Web.

Under the proposed law, users would have a way — possibly a through a browser setting — of telling Web sites not to track them. If a company disregarded this and collected data without permission, it could face stiff fines.

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Apple Outs Patch For Tracking Issue

As Apple promised last week in several discussions regarding its location tracking issues, iOS 4.3.3 addresses three bugs related to the database of location information on iOS devices. Firstly, it reduces the amount of the cached location information to a week’s worth, rather than relying on a size limit, as it previously did.

Secondly, it no longer backs up the cache to your Mac or PC via iTunes upon syncing, so the information isn’t available to anyone with access to your computer. And finally, the cache is now deleted from the device when Location Services are disabled in iOS’s Settings app.

Apple has also announced plans to encrypt the location information on iOS devices itself in the next major update to the operating system, which presumably means it will be incoporated into iOS 5.

The iOS 4.3.3 update applies to the iPhone 4, iPhone 3GS, iPad, iPad 2, third-generation iPod touch, and the fourth-generation iPod touch. Exceptions to this fix though, are the iPhone 3G and the second-generation iPod touch, both of which were supported by the original release of iOS 4 when the location database is believed to have been created but have since been dropped from compatibility. Also missing in action is the CDMA iPhone 4, although some reports have suggested that it didn’t log data in the same way as the GSM model.

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Mobile Panic Button Coming Soon

The U.S. State Department is putting its money where its mouth is, according to the Daily Mail. It is funding the creation of an application that will allow pro-democracy activists to delete all incriminating evidence on their mobile phones with a single click while sending out an alert to their fellow activists.

The “panic button” will send out a text message to everyone in the user’s address book, then erase both that address book and the phone’s call history. This will be an important tool, given how thoroughly governments go through dissident’s communications devices as a matter of course these days.

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